An Introduction to Law and Economics

by Polinsky, A. Mitchell

• ISBN13: 9780735534735
• ISBN10: 073553473X
• Edition: 3rd
• Format: Paperback
• Copyright: 2003-05-01
• Publisher: Wolters Kluwer

Summary

Completely updated and revised for its Third Edition, An Introduction to Law and Economics focuses on a set of core topics including property, contracts, torts, and criminal law. The text imparts a good basic knowledge of economic principles and issues pertaining To The law. Avoiding specialized jargon and math, Polinsky shows students how to think like an economist and understand legal issues from an economic perspective. This Edition features extensive new material in all sections including discussions reflecting the latest legal and economic developments clear explanations in accessible terms a goal-focused approach that shows students how to assess legal rules and policies in terms of their efficiency in attaining broader economic and social goals

Table of Contents

List of Tables	xiii
Preface	xv
Introduction	1	(6)
The Role of Assumptions	2	(5)
Efficiency and Equity	7	(6)
Is There a Conflict?	7	(6)
The Coase Theorem	13	(4)
Zero Transaction Costs	13	(1)
Positive Transaction Costs	14	(3)
First Application --- Nuisance Law	17	(12)
Zero Transaction Costs	19	(1)
Strategic Behavior	20	(3)
Imperfect Information	23	(6)
Second Application --- Breach of Contract	29	(14)
A Fully Specified Contract	31	(2)
Efficient Breach	33	(3)
Efficient Reliance	36	(7)
Third Application --- Automobile Accidents	43	(14)
The Driver's Care	44	(3)
The Pedestrian's Care	47	(3)
The Activity-Level Issue	50	(7)
Risk Bearing and Insurance	57	(6)
The Bearing of Risk	57	(3)
Insurance	60	(3)
Fourth Application --- Breach of Contract Again	63	(8)
Optimal Risk Allocation	64	(2)
The Effects of the Remedies	66	(5)
Fifth Application --- Automobile Accidents Again	71	(8)
Private Insurance Not Available	72	(2)
Ideal Insurance Available	74	(2)
Imperfect Insurance Available	76	(3)
Sixth Application --- Law Enforcement Using Fines	79	(12)
The Risk-Neutral Case	81	(2)
The Risk-Averse Case	83	(8)
Seventh Application --- Law Enforcement Using Imprisonment	91	(12)
Disutility Rises Proportionally	92	(2)
Disutility Rises More than Proportionally	94	(3)
Disutility Rises Less than Proportionally	97	(6)
Competitive Markets	103	(4)
Price Equals Cost	104	(1)
The Efficiency of Competitive Pricing	105	(2)
Eighth Application --- Pollution Control	107	(6)
Only Polluters Determine Harm	108	(2)
Victims Also Affect Harm	110	(3)
Ninth Application --- Products Liability	113	(12)
Consumers Have Perfect Information	114	(2)
Consumers Underestimate Product Risks	116	(1)
Risk Aversion	117	(3)
Consumers Can Take Care	120	(5)
Tenth Application --- Principal-Agent Liability	125	(10)
Basic Analysis	125	(4)
Agent Risk Aversion	129	(2)
Monitoring of Agents	131	(1)
The Judgment-Proof Problem	132	(3)
Eleventh Application --- Suit, Settlement, and Trial	135	(12)
The Litigation Process	135	(6)
The Analysis of Substantive Legal Rules	141	(6)
Efficiency and Equity Reconsidered	147	(10)
Redistribution by Taxes and Transfers	147	(2)
Can Legal Rules Redistribute Income?	149	(3)
Should Legal Rules Be Used to Redistribute Income?	152	(5)
A Summing Up	157	(6)
The Efficiency-Equity Question	157	(1)
The Incentive Question	158	(2)
The Risk-Allocation Question	160	(3)
Conclusion	163	(4)
The Problem of Valuation	163	(4)
Bibliographical Appendix	167	(10)
Index	177